Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "James Tallis" at "04/08/2015 - 09:16":

Hi James

In response to your suggestions in point two I don't think it's fair to back private landlords into a position whereby they need to incorporate.

They will incur large fees to refinance even if the other concessions are made. Some may not be able to refinance into a company due to the different lending criteria.

On the flipside to this, would it be fair if all incorporated landlords were forced to switch to individual ownership?
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Reply to the comment left by "Actual Entrepreneur" at "04/08/2015 - 08:01":

"First – the government wants to promote owner occupation. Why? Because it brings stability."

They also want the flexibility of a mobile workforce. Landlords provide this valuable service. It is a question of striking the right balance.

Your generalisation of tenants not being as good citizens as owner occupiers does not warrant serious reply.

Reply to the comment left by "Actual Entrepreneur" at "04/08/2015 - 08:01":

Whilst I echo the comments from my colleagues I would love you to actually look at the maths, because my friend, you clearly don't understand the sums. I'm not trying to insult you but need to make it clear that you have a misconception about money and being a Landlord.

When I first started I did so with HMO's because I had to generate income. I worked incredibly hard to not go under. Sometimes I worked all day on other people's houses and then carried on with my own properties in the evening. I remember lying on the floor one evening putting screws into a door hinge and just fell asleep with the screwdriver in my hand. I was just so damned tired. And that's only one story, I have plenty more of all the different things I was trying to do to keep my head above water.

When you start getting to a stage where you have more properties then you can't do it all yourself so you outsource and therefore contribute to others finances. I think you will agree that these people may be the sort of individuals you hold so dearly that buy fridges, furniture, ovens and lawnmowers (though God only knows why you think tenants and ourselves do not). Let me tell you Sir that life was TOUGH! In the last few years it's been easier for Landlords because of interest rates, as it has been for everyone else that borrows money for their business, possibly that includes you. However interest rates will rise soon and we'll ALL suffer the costs of those borrowings.

I'll give you another example that I have used before very recently. A year or so back one of my tenants said he was surprised that I wasn't living in the Bahama's or somewhere similar. When I asked him what he was on about he told me that he'd worked out what I was charging on all the HMO rooms of the property he was in and I must be raking it in. I asked him if he'd deducted the mortgage costs, the gas & electricity costs, the water, broadband and insurance costs. Had he made an allowance for rooms nearly always needing repainting when there was a tenant change, all the other maintenance costs and indeed the finance costs of the £55k conversion the property had gone through. From the look on his face I could tell I'd lost him completely so I put it in simple terms for him and said "Brett if I was making all the money you think I am, do you really think I'd be here on a Friday evening fixing your ensuite toilet?" I didn't get a response. He didn't understand and clearly neither do you.

So please take all that into your calculations when you judge other's businesses Sir because I really don't think you have any idea about numbers. I'm afraid you've been sucked in to all the bad press that the likes of Shelter and Generation Rent throw out which leads on to the popular propaganda that the press then generate. And alas our own industry uses that against us with all the Property Trainers telling people they can make a fortune from the comfort of their armchairs, when it just ain't that simple. You've been sucked in and brainwashed 'Actual Entrepreneur' (you seem to think very highly of yourself calling yourself that I'm afraid).

And one last point, whilst I have no idea what industry you work in, will feel quite so sanctimonious if the Chancellor says that he no longer considers your biggest expense as a cost you can offset against your business??

Reply to the comment left by "John McKay" at "04/08/2015 - 09:41":

Imagine this .....

The Government has decided to restrict tax relief that business owners receive on paying wages to their employees. It isn't fair that employees should pay tax on their wages when their employers claim tax relief on them.

Such lunacy is akin to that which landlords are current facing.

Just posted on Facebook

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Reply to the comment left by "Monty Bodkin" at "04/08/2015 - 09:23":

Quite so, Monty. until the Thatcher era it was the norm for most people to rent.

Beg to differ. One could not find a place to rent due to rent control, and the legislation of the time. Renting at the time could make you loose your property to the incumbent tenants. In addition no finance was available due to the legislation.

The law changed in 1988 & If I remember mortgage express was the early pioneers to offer buy to let mortgage..

Reply to the comment left by "shakeel ahmad" at "04/08/2015 - 10:34":

You miss Kathy's point Shakeel.
In 1979 nearly half the population rented. Before then a lot more people rented, the vast majority.
Tenants weren't worse citizens than owner occupiers then and they aren't know, despite what the misguided poster claimed.

Reply to the comment left by "Actual Entrepreneur" at "04/08/2015 - 08:01":

So you'd be perfectly happy if the chancellor changed the tax rules so that, say, you could only charge 20% of your salary costs as a business expense?

And assuming that you operate as a limited company, that your sole trader competitor down the road could claim the full100% of salary costs against profits.

Thanks, Monty.

Reply to the comment left by "Monty Bodkin" at "04/08/2015 - 10:47":

Exactly, Monty. My ultimate aspiration was to get a council house - I never did. But I rented privately until 1983. In many ways, I wish I had gone on renting - no repairs and redecoration to pay for, no hassles getting builders out ...